Freedom Finance investment company has been chosen as an underwriter for the initial public offering for UzAuto Motors, according to Eugene Mozheiko, executive director of Freedom Finance in Uzbekistan.
This spring UzAuto Motors announced bidding for potential underwriters. On June 6, the procurement committee of the Uzbek automaker revealed its final decision. As a result, Freedom Finance is expected to sell 5% stock of UzAuto Motors within the country while about 25% of the stock must be sold on foreign stock exchanges.
«Freedom Finance is going to arrange stock launches on two stock exchanges. The very first stage is local exchange. It is scheduled for the last quarter of this year. The second stage is going to start next year. Freedom Finance is planning to enlist the help of big foreign banks to sell the stocks on foreign exchanges,» Mozhaiko said.
The value of the stocks that might be sold on the local market is estimated to be between $20 million to $50 million or about 5% of UzAuto Motors’ stock. If the demand surpasses the offering, the company may offer investors an additional 5% of the stock.
Last year, Freedom Finance closed deals with bonds of Uzmetkombinat. It was the fourth successful stock launch by the company in Uzbekistan.